The Lowdown on Downsizing When It Comes Time For Retirement
Your family home has been a cherished place for you, your kids and your extended family for many years, but maybe you’re thinking you’d like to downsize into something smaller when you retire? Perhaps you are no longer are able or interested in doing all the lawn-mowing, raking, shovelling and the never-ending maintenance that comes with owning a larger property. Some people downsize so that they can take that nest egg they’ve built up and sell their home for a significant profit that will help fuel their retirement plans. Whatever your reasons for downsizing, let’s take a closer look at what you need to know to help make it both personally and financially successful.
Don’t forget about net gains
As most people recognize, home values have been skyrocketing for many years, especially in places like the Greater Toronto Area (GTA) and in British Colombia. Even outside of these areas, most well-maintained and/or well-situated homes will turn a decent profit. For many people looking to retire, their home sale may be a significant piece of their financial puzzle; with the profits going towards their debt-reduction and/or retirement cash-flow. However, it’s important to remember that a new, smaller residence may eat up a large portion of those gains if there isn’t a strategic plan in place. For example,